Short answer: Yes. If HHSC determines that enrolling a Medicaid member in an available employer plan is cost-effective, Texas law lets it require that enrollment as a condition of Medicaid eligibility, and HHSC then pays the premium share.
Texas asks about employer coverage on Medicaid applications and renewals and receives new-hire reports to find people who could use it. When the employer plan is cost-effective, HHSC can require the person to apply for it, and Medicaid members must cooperate with HHSC and its HIPP contractor by providing coverage information, enrolling in the employer’s plan and providing proof of premium payments. Refusing without good cause can lead to denial.
Texas insurance law then requires the insurer to accept the enrollment outside the normal enrollment period once it receives HHSC’s written notice.
For the employer, this is a routine, lawful midyear enrollment, not a favor. HR should process it promptly.